• |
Released KAI 2.0, the latest update to its proprietary ad fraud
identification and prevention technology including improvements such as: expanded real-time AI with 25 algorithms running in under 10 milliseconds and built-in efficiencies to significantly expand the number and complexity of algorithms
in the future; full support for the much larger scale IPv6 protocol (to add to the existing IPv4 support); enhanced support for new CTV and audio formats; and more.
|
• |
Announced that the United States Patent and Trademark Office (“USPTO”)
had issued its patent for the Company’s proprietary ad fraud identification and prevention technology, KAI.
|
• |
Launched the KAI Dashboard, a reporting and optimization platform that
helps media publishers and platforms better understand and manage inventory health.
|
For the Years Ended
December 31,
|
||||||||
2022
|
2021
|
|||||||
Net Revenues
|
$
|
2,403,408
|
$
|
2,737,767
|
||||
Costs and Expenses:
|
||||||||
Sales and marketing
|
3,779,509
|
3,032,133
|
||||||
Technology
|
3,177,497
|
3,079,752
|
||||||
General and administrative
|
6,558,052
|
6,117,601
|
||||||
Loss on legal settlement
|
-
|
880,381
|
||||||
Impairment loss on intangible assets
|
2,626,974
|
-
|
||||||
Impairment loss on property and equipment
|
49,948
|
-
|
||||||
Impairment loss on goodwill
|
463,000
|
-
|
||||||
Total Costs and Expenses
|
16,654,980
|
13,109,867
|
||||||
Loss From Operations
|
(14,251,572
|
)
|
(10,372,100
|
)
|
||||
Other (Expense) Income:
|
||||||||
Interest expense
|
(10,909
|
)
|
(8,383
|
)
|
||||
Interest income
|
18,597
|
88,537
|
||||||
Change in fair value of contingent consideration
|
613,000
|
-
|
||||||
Other income
|
11,000
|
233
|
||||||
Total Other Income
|
631,688
|
80,387
|
||||||
Net Loss
|
$
|
(13,619,884
|
)
|
$
|
(10,291,713
|
)
|
||
Net Loss Per Share - Basic and Diluted
|
$
|
(0.95
|
)
|
$
|
(0.75
|
)
|
||
Weighted Average Common Shares Outstanding - Basic and Diluted
|
14,319,060
|
13,695,700
|
December 31,
|
||||||||
2022
|
2021
|
|||||||
Assets
|
||||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$
|
14,739,484
|
$
|
24,907,963
|
||||
Accounts receivable, net
|
135,658
|
2,291,533
|
||||||
Other receivables
|
-
|
526,070
|
||||||
Prepaid expenses and other current assets
|
346,935
|
495,178
|
||||||
Total Current Assets
|
15,222,077
|
28,220,744
|
||||||
Intangible assets, net
|
-
|
2,946,610
|
||||||
Goodwill
|
-
|
463,000
|
||||||
Property and equipment, net
|
-
|
44,756
|
||||||
Deferred financing costs
|
10,000
|
10,000
|
||||||
Total Assets
|
$
|
15,232,077
|
$
|
31,685,110
|
||||
Liabilities and Stockholders' Equity
|
||||||||
Current Liabilities:
|
||||||||
Accounts payable - suppliers
|
$
|
673,781
|
$
|
1,844,544
|
||||
Accounts payable - trade
|
816,190
|
659,362
|
||||||
Accrued expenses and other current liabilities
|
830,365
|
2,493,287
|
||||||
Deferred revenue
|
28,403
|
395,914
|
||||||
Current portion of notes payable
|
-
|
151,336
|
||||||
Total Current Liabilities
|
2,348,739
|
5,544,443
|
||||||
Contingent consideration
|
-
|
613,000
|
||||||
Notes payable, non-current portion
|
78,900
|
77,407
|
||||||
Total Liabilities
|
2,427,639
|
6,234,850
|
||||||
Stockholders' Equity:
|
||||||||
Preferred stock, $0.00001 par value; 5,000,000 shares authorized; No shares issued and outstanding as of December 31, 2022 and 2021
|
-
|
-
|
||||||
Common stock, $0.00001 par value; 95,000,000 shares authorized; 14,456,035 and 14,253,948 shares issued and outstanding as of December 31,
2022 and 2021, respectively
|
145
|
143
|
||||||
Additional paid-in capital
|
53,004,967
|
52,030,907
|
||||||
Accumulated deficit
|
(40,200,674
|
)
|
(26,580,790
|
)
|
||||
Total Stockholders' Equity
|
12,804,438
|
25,450,260
|
||||||
Total Liabilities and Stockholders' Equity
|
$
|
15,232,077
|
$
|
31,685,110
|
For the Years Ended
December 31,
|
||||||||
2022
|
2021
|
|||||||
Cash Flows From Operating Activities:
|
||||||||
Net loss
|
$
|
(13,619,884
|
)
|
$
|
(10,291,713
|
)
|
||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
Bad debt expense
|
7,000
|
22,698
|
||||||
Impairment loss on intangible assets
|
2,626,974
|
-
|
||||||
Impairment loss on property and equipment
|
49,948
|
-
|
||||||
Impairment loss on goodwill
|
463,000
|
-
|
||||||
Depreciation and amortization
|
330,993
|
452,136
|
||||||
Change in fair value of contingent consideration
|
(613,000
|
)
|
-
|
|||||
Stock-based compensation:
|
||||||||
Common stock
|
982,647
|
700,652
|
||||||
Options
|
8,840
|
23,390
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
2,148,875
|
(940,477
|
)
|
|||||
Other receivable
|
507,387
|
3,955
|
||||||
Prepaid expenses and other current assets
|
506,109
|
73,491
|
||||||
Accounts payable - suppliers
|
(1,170,763
|
)
|
1,508,516
|
|||||
Accounts payable - trade
|
156,828
|
(447,242
|
)
|
|||||
Accrued expenses and other current liabilities
|
(1,617,375
|
)
|
1,467,306
|
|||||
Deferred revenue
|
(367,511
|
)
|
(247,504
|
)
|
||||
Net Cash Used In Operating Activities
|
(9,599,932
|
)
|
(7,674,792
|
)
|
||||
Cash Flows From Investing Activities:
|
||||||||
Purchase of intangible assets
|
-
|
(1,133,072
|
)
|
|||||
Purchase consideration of MediaCrossing
|
-
|
(500,000
|
)
|
|||||
Purchase of property and equipment
|
(16,549
|
)
|
(39,414
|
)
|
||||
Net Cash Used In Investing Activities
|
(16,549
|
)
|
(1,672,486
|
)
|
||||
Cash Flows From Financing Activities:
|
||||||||
Proceeds from exercise of warrants [1]
|
-
|
9,787,149
|
||||||
Proceeds from exercise of options
|
-
|
8,361
|
||||||
Repayment of PPP loan
|
(149,843
|
)
|
(177,347
|
)
|
||||
Repayment of financed director and officer insurance premiums
|
(402,155
|
)
|
(145,050
|
)
|
||||
Net Cash (Used In) Provided By Financing Activities
|
(551,998
|
)
|
9,473,113
|
|||||
Net (Decrease) Increase In Cash and Cash Equivalents
|
(10,168,479
|
)
|
125,835
|
|||||
Cash and Cash Equivalents - Beginning of the Period
|
24,907,963
|
24,782,128
|
||||||
Cash and Cash Equivalents - End of the Period
|
$
|
14,739,484
|
$
|
24,907,963
|
For the Years Ended
|
||||||||
December 31,
|
||||||||
2022
|
2021
|
|||||||
Net Loss
|
$
|
(13,619,884
|
)
|
$
|
(10,291,713
|
)
|
||
Interest expense
|
10,909
|
8,383
|
||||||
Interest income
|
(18,597
|
)
|
(88,537
|
)
|
||||
Change in fair value of contingent consideration
|
(613,000
|
)
|
||||||
Depreciation and amortization
|
330,993
|
452,136
|
||||||
EBITDA
|
(13,909,579
|
)
|
(9,919,731
|
)
|
||||
Adjustments:
|
||||||||
Stock-based compensation expense
|
991,487
|
724,042
|
||||||
Adjusted EBITDA
|
$
|
(12,918,092
|
)
|
$
|
(9,195,689
|
)
|
||
Adjusted Loss Per Share
|
$
|
(0.90
|
)
|
$
|
(0.67
|
)
|
||
Weighted Average Common Shares Outstanding -
|
||||||||
Basic and Diluted
|
14,319,060
|
13,695,700
|